Microsoft is urging the Trump administration to reconsider export restrictions on artificial intelligence chips, arguing that the current measures are detrimental to U.S. allies.
In a blog post released on Thursday, the tech giant stated that the restrictions, implemented in the closing days of the Biden administration, place U.S. allies like India, Switzerland, and Israel at a disadvantage. Microsoft believes these regulations limit the ability of U.S. firms to develop and broaden AI data centers in these countries.
The tighter export restrictions on advanced AI chips to Beijing are preventing American chipmakers and major tech companies from accessing one of the largest markets for semiconductors, thus accelerating the international competition for dominance in AI infrastructure.
Market leader Nvidia, known for its AI chips that fuel applications like OpenAI’s ChatGPT, could be significantly affected by these curbs. Previous restrictions already limited exports of its graphics processors to Beijing.
In the final days of the Biden administration, the U.S. government announced further restrictions on AI chip and technology exports, aiming to maintain advanced computing power within the U.S. while simultaneously seeking new ways to restrict China’s access.
Microsoft claims that these restrictions could inadvertently benefit Beijing, as allies might turn to the Chinese market due to the lack of sufficient U.S. technology. “Left unchanged, the Biden rule will give China a strategic advantage in spreading over time its own AI technology, echoing its rapid ascent in 5G telecommunications a decade ago,” the company said.
While Huawei and its domestic peers have struggled to compete with Nvidia in producing high-end chips, Chinese startup DeepSeek’s inference-focused, low-cost models could pose a challenge, analysts have noted.
Microsoft warned that the sweeping restrictions introduced in January by the Biden administration “will become a gift to China’s rapidly expanding AI sector.”
According to the Wall Street Journal, which first reported Microsoft’s proposals, Trump administration officials are considering actions to strengthen the restrictions while seeking to simplify the export-control rules.
The White House has not yet issued a response to requests for comment.
